QUESTION 7

1. Given the following information on a MPT, what is the total cash flow available to investors in year 8?

   0. • 10 year FRM, fully amortizing, annual payments.

      • No prepayment or default

      • 100 loans in the pool

      • Starting balance of $300,000/loan

      • Mortgage rate 4%

      • No servicing/guarantee fees

   QUESTION 8

2. Given the following information on a MPT, what is the anticipated total cash flow available to investors in year 2? [Excel is strongly recommended to answer this question]

   10 year FRM, fully amortizing, annual payments.

   No prepayment

   100 loans in the pool

   Average starting balance of $375,000/loan

   Mortgage rate 5.5%

   0.5% Servicing fee

3. QUESTION 9

4. Given the following information on a MPT, what is the guarantee and servicing fee payment in year 3? (Round your answer to the nearest dollar)

   (Note: You can perform this calculation with the spreadsheet or by completing it iteratively.)

   [Excel is strongly recommended to answer this question]

   10 year FRM, fully amortizing, annual payments.

   No prepayment

   100 loans in the pool

   Average starting balance of $375,000/loan

   Mortgage rate 5.5%

   0.5% Guarantee and servicing fee

   QUESTION 10

5. Given the following information on a MPT, how much money is each individual investor receiving in year 5?

   (Note: You can perform this calculation with the spreadsheet or by completing it iteratively.)

   [Excel is strongly recommended to answer this question]

   10 year FRM, fully amortizing, annual payments.

   No prepayment

   100 loans in the pool

   Average starting balance of $375,000/loan

   Mortgage rate 5.5%

   0.5% Guarantee and servicing fee

   There are 40 investors each with equal shares